This document provides an overview of the proposed business MakeMyHome.ca, which will offer customized furniture designed by customers online and manufactured in India. Key points include:
1) MakeMyHome.ca will allow customers to design furniture digitally and have it custom built to order in India and shipped within 90 days.
2) The target market is homeowners aged 35-60 looking for high-quality, customized furniture.
3) Revenue will be generated through online sales of custom furniture designs. Marketing will focus on social media, print ads, videos, and attending trade shows and festivals.
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1.0 Executive Summary:
MakeMyHome.ca is an online-based company where customers can design their own
furniture with the help of Solid works and 3D filter software. After the customers send in their
design we will get back to them with a price within 24 hours and few other designs similar to the
original design and other varieties of wood so the price might drop and customers have plenty of
options to choose from.
Then the designs sent to India where the carpenters design it and ship it to our customer’s
doorstep within the promised 90 days.
The marketing plan, operations plan, key issues and the competition are described in
detail in the following pages.
2.0 Business Overview:
2.1 Introduction:
In present era, Canada is among the best countries in the world to live in; every other
person wants to settle down here. Canadians are working very hard to buy their dream house in
this multicultural country. And are ready to spend a mammoth amount of money to make their
houses look attractive, but they end up buying furniture from stores like IKEA and other famous
stores and feel dissatisfied when that furniture does not fill their needs and it is not comfortable
to them.
Moreover, the most common problem for the people living in small condominiums, or in
high-rise apartments, where they have very limited space and fail to find the right size of
furniture in that spot where they think it may look beautiful. They have a hard time to find the
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right piece, it usually happens when you like a design it is oversize and when you find the right
size, you do not like the design or model. In addition, we know number of people demanding for
high-end furniture with good quality of wood like Rosewood, teakwood, Acacia etc.
Some people like to have their beautiful furniture for years, they do not prefer which looks good
but lasts few months or a year if they are lucky.
Make my home.ca is here now to offer exactly you want, wish to have the furniture in
your house according to your size requirement, your selection of design and model, and even the
wood you select with affordable price for everyone. Our website (makemyhome.ca) has a variety
of wood to select and different finish as well like light and dark finish, golden oak, red
mahogany etc. The most important we have a tool called solid works CAD/CAM to make your
own design or model on our website and submit it with the information and deposit to make an
order.
2.2 Business Model:
2.3 Product or Service:
Makemyhome.ca provides high-end furniture with customization as an option where you
can build or design it according to your requirement. We manufacture that customized piece for
you in India with high quality of wood and other raw materials and ship it to you with in a short
period (90 days). Initially as we start our website, we do not expect to get the orders right away.
We know a person who owns a furniture store he imports the real hardwood, rosewood furniture
manufactured in India, which includes very beautiful Rosewood furniture. In addition, the
antique old door dining tables, coffee tables, reclaimed wooden bookshelves, shoe racks, Bar,
and Acacia dining table, coffee table that is rarely available in North America and believed to be
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the high-end furniture. Actually, it is a kind of pop up store. Every year, they setup a store in one
location for 4-6 months they believe that by signing short-term leases keeps their overhead low.
At the end of their period of 4-6 months, they store whatever they left with in a cheap storage or
warehouse for the next year.
We are targeting our market for the customers who have a design or model of furniture in
their minds, and could not find it anywhere else, and for those who are tired of spending on
delicate stuff, which does not last long enough. There are few reasons for which people should
go for makemyhome.ca. It will give value added to their service for their customers such as:
1. Provide wide range of wood quality.
2. Customize it according to your design, size and model.
3. Wide range of finishing stain to match your existing furniture
4. Do not have to wait for years, will be delivered within 90days of order.
5. A very reasonable and affordable pricing
6. Beautiful Handcraft, carving on wood
This website has some of the regular design and size furniture pictures and the tool to build
your own design after building the design, select the stain finish and wood type.
2.4 Revenue:
At makemyhome.ca, we collect the revenue through credit card. We charge our
customers on various factors depending on the type of material (wood) they select, size, shape,
woodcraft and time to deliver on customized furniture. The minimum time to deliver a
customized order is 90days; price might slightly dropped if time is not restricted. Moreover, the
regular on store furniture from our aligned store will delivered within 15 days.
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2.5 Mission Statement:
Our mission is to meet the need of customers with respect to quality, price and
satisfaction and help them accelerate their passion to decorate their homes with right furniture of
comfort.
2.6 Major Demographics:
Age: We are looking to target age group of 35 to 60 years.
Gender: Both males and females would require furniture, but our priority target would be
couples.
Household income: MakeMyHome.ca offers high-end furniture; the minimum household income
we would target would be $60,000 to $100,000 per annum.
2.7 Major Players:
2.7.1 Suppliers:
MakeMyHome.ca gets its raw materials, that is, woods from two suppliers located in
India. They are M.K.Wood India Pvt Ltd and Sonearply Pvt Ltd. We would negotiate with the
company who gives us quality wood for a reasonable price.
2.7.2 Manufacturing unit:
After buying the raw materials, we need a manufacturing unit and few labours to create
the furniture according to the design requested by the customer. This is where our product
designer comes from his family owns a small manufacturing unit in India that we could use. All
we need to do is to hire few labours or carpenters to create the furniture according to the design.
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2.7.3 Clients:
Our major clients would be the couples who bought their first house. Those people are
the one is willing to spend money to make their new home perfect. The baby boomers too are out
minor clients who would like to spend their retirement according to their liking.
2.8 Nature of the Industry:
The population in Canada is increasing slowly every year, many people from Asia and
other parts of the world are moving to the great white north. Therefore, people will buy new
houses at some point of their life and they need to fill it with furniture. The furniture industry is
huge in today’s world and giving customers customized furniture is an added bonus for our
business.
2.9 Market Segmentation:
The Canadian furniture market is in need for a customized furniture shop to open. The
first step in target marketing is to identify different customers, market segments, and their needs.
While promoting the product the marketing manager should identify group of people that are
easily measurable, and are easily reachable through different modes of communication. There
should be enough resources with the manager before targeting the people. We are targeting
couples in the age group of 35 to 60 years. We have identified a particular group of people and
we are trying to fulfill their water sport need. Our market segmentation is as follows: geographic
segmentation, demographic segmentation, psychographic segmentation and behavioural
segmentation. We are launching the website in Canada but our operation will take place in India.
2.10 Safety issues:
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After delivering the product to the customer’s doorstep they might face difficulty to set-
up the furniture, we would provide the customers with free broachers with easy to follow
instruction to set-up and we would include removable markings on the furniture so the customers
would not get confused. We would offer to set-up the furniture in their house for an extra fee if
the customers were willing to pay for it.
3.0 Sales and Marketing:
3.1 Competitive positioning (The four P’s):
3.1.1 Product:
MakeMyHome.ca offers personalized custom furniture for the Canadians. We will upload
tools with the help of a Computer Aided Software, Solid Works to get a 3D design of the final
product. The lack of customized furniture shop in Canada will make sure MakeMyHome.ca
successful in the near future. We even offer antique woods for the customers to use them as their
furniture such as coffee table, dinning table etc. We would also sell products of Exotic rosewood
furniture based on Vancouver who sells high-end furniture.
3.1.2 Place:
We are an online-based company that focuses on Canada. We have a small
manufacturing unit in India where we manufacture the furniture and then ship it though our
Vancouver based exotic rosewood furniture, which we are going to form alliance with our
company.
3.1.3 Price:
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To determine the price of the product beforehand is not practical. Once the customers
send us their design of the furniture, we would get back to them within 24 hours after analysing
the cost. We would also send some alternative designs with very few modifications and other
wood varieties so the cost of the final product goes down with free of cost. If the customer is not
happy with the price of their design, they could opt for the alternative wood varieties or designs.
3.1.4 Promotion:
After hosting the web site, we would like to start with on ground marketing strategy. We
would like to enter different trade shows held in Canada. We have found few trade shows which
we would be a part of they are, Canada Trade show which is held at Toronto on January every
year, Canadian home furniture trade fair which is also held in Toronto every year and Calgary
trade show in February every year to name a few.
We would also take part in festivals that take place every summer in entire Canada such as
Italian Festival, Mexican Festival, Indian festival, Car-free day, Caribbean festival, etc. After
generating some reputation, we would target to market in the social media, newspapers.
4.0 Market Analysis:
It is always important to gain the knowledge about the market before launching a new
product into the market. Our product, MakeMyHome.ca is a new and unique product in
Canadian furniture industry. As the uniqueness of the product is not enough for the success of
the product or business. There are many other aspects such as need of the customer, requirement
of the product to the market, and the consumer behaviour these are things should be taken in to
consideration before entering into the market. We have made a research by preparing a
questionnaire and sending it to local reputed furniture retail stores across Canada.
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The questionnaire will contain the following questions:
• How many customers do you get daily?
• During which season you get most of your business.
• What are the main customer preferences in high-end furniture?
• Do customers ask for a specific variety of wood?
• Are the customers interested in antique furniture?
• How much percent of your customers buy high-end furniture.
• What is the age group of customers?
• Do you think the online-customized furniture shop can survive in today’s market?
• How many customers ask for a specific shape and size of the furniture?
• What percent of the customers request for customized furniture?
After receiving this feedback from about twenty retail stores, we found that this online-
customized furniture shop satisfies the needs for custom furniture.
As most of the Canadians will be willing to spend money to get furniture for their new
home according to their liking, MakeMyHome.ca has a good chance to survive in this market.
We are planning to target the people who recently bought or about to buy a new house.
This particular furniture industry is very big as people taste change quite often and wants new
furniture very now and then. The age group of 35 to 60 would be our target market.
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5.0 Competition:
Every business has both direct and indirect competition. Direct competition is a
competition when a similar kind of product offered in the market and indirect competition will
taken into considered as a competition when a same product is presented to different customers.
5.1 Direct Competition:
This kind of competition is not present in the Canadian market for the customized online
furniture shop in Canada, as none of existing company offers the same service. There is a chance
for direct competition in the future, if some other company or an existing can introduce similar
kind of service that will capture our business.
There are few online-customized furniture shops in the United States of America and
Canada but they do not provide any tools in the website for the customers to modify, they need
to contact the person in charge and need to make a face-to-face appointment with them. Web site
such as Remafurniture.com is one of those sites.
5.2 Indirect Competition:
There are many on ground furniture shops that offer customized furniture through out
Canada. Moreover, there are famous retail stores like IKEA which offers high quality furniture
(not customized) at a very low price. Nevertheless, the only advantage we have is the uniqueness
of our service.
6.0 Marketing Plan:
Marketing plan plays a vital role in the company’s success and its product. In current
trend, having a good product in hand only will not sufficient for the success of the product but
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taking that into the market and marketing plan also plays a vital role in the success of the
business. As our business mainly targeted on the people who bought new houses, broad
marketing techniques are required to reach the customers.
6.1 Social Media and World Wide Web:
Social Media is an influential channel through which marketing is going on for many
products in the present world. We would put up Ads in real-estate web sites, so when people are
searching for a new house they can see our site.
6.2 Paper:
Advertisements in famous magazines and local newspapers, so by this can reach to a
wider range of people.
6.3 Video:
A sample attractive video telecasted in local cable network in order to attract local
customers and in all real estate web sites because the impact of the videos is more effective.
6.4 Trade shows:
We would like to open our stall and display our services in all the furniture (or relevant)
trade shows that takes place in the entire Canada.
6.5 Festivals:
We would like to display our services as we do in our trade shows in as many festivals as
we can cover lot of couples and would get huge publicity for almost free of cost.
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7.0 Operations Plan:
7.1 Business Location:
The main business location is our online web site, MakeMyHome.ca and we will be
operating from Vancouver, Canada. Our Manufacturing unit is in India because of the cheap
labour and cheap raw materials.
We will register our company trade name and open a company bank account. Then we
will apply for payment processing system such as PayPal, credit card, interact, cheques.
7.2 Competitive Advantages:
As we have already mentioned, our main advantage will be the simple tools created by
Solid Works software and Filter 3D software for our customers so they can design according to
their will. In addition, due to our alliance with Exotic rosewood furniture, we get free shipping
from them, so we will not charge our customers the shipping expense that is very expensive and
they will get high-end customized furniture for a reasonable price. Moreover, we make sure that
we shall deliver the product within the promised time.
7.3 Lease details:
For the manufacturing unit we do not require to pay any lease because our product
designer, Anil Reddy, family owns a manufacturing unit, which we would use.
However, we need to pay for our Web site and maintenance frequently so the customers will not
face any difficulty or interruptions like site breakdown etc.
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We are planning to rent a virtual office in Downtown Vancouver, where we will get out mails
and checks, permits etc. If we need a place for official meeting place, we could rent an office for
hourly bases.
7.4 Equipment:
We need to buy Solid Works software and Filter 3D software to create tools on our web
site while our IT tech, Irfan Khan will install and create the tools and make it user friendly.
We need not pay money for the equipment in India because all the required equipment already
exists.
8.0 Human Resources/Key employees:
Management team:
Our management team consists of four key employees, they are
Irfan Khan - IT Technician
He has done his Bachelors in Business management and has a diploma in Information
Technology. He is in charge of hosting the website and maintaining it.
Anil Reddy – Head of Operations/Product designer
He has done his Bachelors in Electrical engineering and has a good grip in product design
because of his family business.
Aditya Boyilla – Marketing Manager
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He has experience in marketing and sales for the past six months and he will take care of
all on-ground marketing and online marketing strategies
Praneet – Financial Manager and Auditor
He has some background in Accounting so he will take care of all the financials and legal
stuff.
Other than these four, we are going to hire few carpenters in India to design the furniture.
9.0 Key Issues:
9.1 Trust:
Gaining trust with the customers is the biggest concern MyMakeHome.ca is about to
face. It takes ages to gain enough trust with the customers so they will order furniture from our
online website.
9.2 Publicity:
Every new company faces this problem. Many companies will have a very aggressive
marketing strategy, but they fail to reach the target market. MakeMyHome.ca is making sure no
stone will left unturned in the marketing strategy but how much percent of the target market it
might not reach is the biggest concern.
9.3 Delivery:
Customers do not like to wait for a long gap of time for their products. We will make sure
that we will deliver the products to the customer doorsteps within 90 days of the final payment.
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Appendix: Financial Plan
In this business, it is very important to pay attention on cash out flow, as start-up cost
mainly will for the manufacturing unit in India for the tools, equipment’s, labour, rent, and
material. As Anil Reddy’s family has an existing furniture-manufacturing unit with almost all
equipment to start we need to buy the material like wood, and other accessories needed, we need
to hire some more carpenters and the shipping cost to the dock. Shipping cost to Canada is not
applicable, as our furniture would be coming in the container of Exotic rosewood furniture as we
have an alliance with them. The second part of expenses begins in Canada to develop and launch
our website that will also have the software tool 3D solid works CAD/CAM for designing the
furniture on the website; it just comes in the start-up cost, as it is one time investment and the
website and hosting maintenance ongoing. Investment on marketing will be very crucial
including all types of promotions, newspaper ads, and online promotions on social networking
sites, attending trade shows, fairs and festivals where we might have to go there and set up a
stroll or booth. It will cost us to rent a booth, stroll and spot in the trade show, fair or festival.
In order to lower our cost, we decided not to hire local Canadian employees, therefore all
the tasks regarding website hosting, Irfan Khan will perform maintenance and receiving orders
online as he has some previous experience in web hosting and managing online sales. Parneet is
in charge for all the financials of our business transactions, taxes, expenses, incomes etc. Aditya
will be dealing with marketing, promotions, attending trades shows, fairs. Anil is our operations
head residing in India who will be responsible for the managing employees, buying material,
delivering furniture to the containers and all other manufacturing operations.
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We will invest funding for the start up equally and profit shared equally. We maintain
some extra amount of money every month for other miscellaneous expenses or contingency cost.
For cash inflow, during the first six months, we assumed to get at least five and expect to
increase sales after attending the trade shows and fairs, and as the general public get to know
more about us that it is more easier to get the better quality customized furniture by which they
will be definitely satisfied
Income statement for Makemyhome.ca 2012 (Monthly)
Jan Feb Mar April May June July Aug Sept Oct Nov Dec
Revenue
Net $00 $00 $4500 $4800 $9000 $14700 $9700 $8400 $9000 $16200 $13400 $22000
Sales
Operating
Expenses
Web Cost $2000 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Soft/
Hardware
Working $00 $00 $1000 $1500 $2000 $3500 $2000 $2000 $2500 $4000 $4500 $4500
Capital
Internet/ $560 $460 $460 $460 $460 $460 $460 $460 $460 $460 $460 $460
phone
Advertising $5000 $1500 $1500 $1500 $2500 $1500 $1500 $1500 $1500 $2000 $1500 $1500
Traveling $1200 $900 $500 $500 $1000 $500 $500 $500 $500 $500 $500 $500
Salaries - - $500 $500 $500 $500 $500 $500 $500 $500 $700 $700
Rent $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Shipping - - $100 $150 $150 $200 $200 $200 $200 $200 $250 $250
Miscellaneou $800 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $1000
s
Total $9860 $4860 $5060 $5610 $7610 $7660 $6160 $6160 $6660 $8660 $8910 $9410
expenses
Net Income -$9860 -$4860 -$560 -$810 $1390 $7040 $3540 $2240 $2340 $7540 $4490 $1259
Before taxes (loss) (loss) (loss) (loss`) 0
Taxes on $187.65 $950.4 $477.9 $302.4 $315.9 $1017.9 $606.15 $1699.
Income 65
Net Income $9860 $4860 $560 $810 $1202.35 $6089.6 $3062.9 $1937.6 $2024.1 $6522.1 $3883.8 $1089
(loss) (loss) (loss) (loss) 5 0.35
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In the above statement we have no sales in first two months then we have our first sale in mar and
sales go high in June as we attended a trade show in may ending and have few customers and also
the travelling and advertisement increases in that month as expenses. In first month, we have high
expenses because of some start-up expenses as website launch and Office hardware purchase. Even
advertisement will be to maximum in first month to attract customers.
Taxes calculated at 13.50%
Income statement for Makemyhome.ca 2013 (Quarterly)
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Revenue
Net sales $72850 $84200 $68750 $88550
Operating Expenses
Web Cost Soft/ Hardware $1050 $1050 $1050 $1050
Working capital $9500 $10400 $9000 $10500
Internet/ phone $1380 $1380 $1380 $1380
Advertising $5000 $6000 $4500 $5000
Travelling $2000 $3000 $2000 $2000
Salaries $3000 $3000 $11000 $15000
Rent $1000 $1000 $1000 $1000
Shipping $1500 $1500 $1500 $1500
Miscellaneous $1500 $1500 $1500 $2000
Total Expenses $25930 $28830 $32930 $39430
Net Income Before $46920 $55370 $35820 $49120
Taxes
Taxes on income $6334.2 $7474.95 $4835.7 $6631.2
Net income $40585.8 $47895.05 $30984.3 $42488.8
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In this bank statement, Advertising and travelling cost increases in the second quarter, as there is a trade
show in April and We reach the breakeven point in 19th month i.e. in July 2013 and hence we all partners start
taking salary from the next month $1000 each per month, it will increase as our company grows.
Income statement for Makemyhome.ca 2014
Year 2014 Year 2015 Year 2016
Revenue
Net sales $195350 $211200 $240000
Operating Expenses
web cost soft/ hardware $4200 $4400 $4400
Working capital $35000 $42000 $46000
Advertising $2000 $2000 $2000
Internet/phone $5520 $5520 $5520
Travelling $6000 $6000 $6000
Salaries $84000 $84000 $84000
Rent $4000 $4000 $4000
Shipping $8000 $8000 $8000
Miscellaneous $4000 $4000 $4000
Total Expenses $152720 $159920 $163920
Net Income Before Taxes $42630 $51280 $76080
Taxes on income $5755.05 $6922.8 $10270.8
Net income $36874.95 $44357.2 $65809.2
Our revenue increases as our company grows and people know us better and the store, (Exotic rosewood
Furniture) does promotions for our websites as we sell their products too. Our salary also increases. And we
hope to do well in future as well
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Reference:
Francis Lemieux $ Co. (n.d.), Agricultural woodwork, retrieved on October 10, 2011, from
http://www.francislemieux.com/custom.htm
Canadian Freightways (n.d.), Services, retrieved on October 10, 2011, from
http://cf.cfmvmt.com/web/cf/cfWebsite.nsf/frmHome?OpenForm